Toll road operator, Transurban Group, says all of its Australian assets increased traffic and revenue for the March quarter, but the news from the US wasn’t so good where toll revenue and traffic fell on the Pocahontas Parkway near Washington.
In a report to the ASX yesterday Transurban said that "proportional" toll revenue from its continuing assets rose 9.4%, excluding the impact of the CityLink revenue protection provision in Melbourne in the prior corresponding period.
"Including the M4, proportional toll revenue increased by 5.2% to $196.3 million, despite the M4 concession ending on 15th February," the company said in its statement.
"All Australian assets reported positive traffic growth and positive revenue growth for the quarter.
"Double digit toll revenue growth was delivered on both 100% owned assets, with CityLink revenue growing 11.0% and Hills M2 growing 15.0%.
"Truck growth continued to be strong across the New South Wales assets with workday truck traffic increasing by 2.2%.
"CityLink continued to benefit from a reduction in the level of construction works, showing strong month on month traffic growth for the quarter," the group said.
Transurban said that toll revenue on CityLink, parts of which are being upgraded, grew 11% to $95.6 million, and average daily transactions on CityLink rose 6.4% to 691,452.
The 15% rise in toll revenue on the Hills M2 in Sydney saw revenue hit $34.6 million, and average daily traffic was up 2% to 94,491.
Toll price increases for cars and trucks were key drivers of revenue growth, the company said.
For the M1 Eastern Distributor, in which Transurban has a stake of 75.1%, total toll revenue rose 5% to $20.2 million, and average daily transactions were up 4.8% to 49,130 as truck tolls were increased.
On the Westlink M7 in Sydney (50% owned) total toll revenue rose 9.1% to $43.1 million, and average daily transactions grew 7.4% to 126,935.
On the M5, half owned by Transurban, total toll revenue was up 3.8% at $39.8 million, and average daily transactions were up 3.7% to 121,278.
But reflecting the continuing sluggishness in the US, for the 75%-owned Pocahontas Parkway in Virginia total toll revenue dropped almost 2% to $US3.1 million, and average daily transactions also fell 1.9% to 12,594.
Transurban securities rose 7c to $5.19 yesterday.
Macquarie Group has lifted the number of jetliners under its control by buying an aircraft operating lease portfolio from International Lease Finance Corporation (ILFC), a subsidiary of the struggling American International Group.
Macquarie told the ASX yesterday that it had agreed to acquire 47 of 53 aircraft from ILFC, with the other six offered to a Macquarie associate called Macquarie AirFinance.
Macquarie said it would buy its 47 aircraft for $US1.671 billion, net of current cash deposits and subject to adjustments.
Macquarie Bank will transfer to Macquarie AirFinance – a global aircraft leasing company 37.5% owned – the right to purchase six of the 53 aircraft directly from ILFC on similar terms to Macquarie Bank’s purchase.
The gross purchase price of the 53 aircraft is $US1.987 billion, or just over $A2 billion.
The acquisition would be funded from cash reserves, Macquarie said. Macquarie said the 47 aircraft were young, modern aircraft on lease to 35 airlines in 27 countries.
Seventy per cent of the portfolio were either Boeing 737 "Next Generation" or Airbus A320 planes of varying configuration.
The rest were in-production wide body aircraft.
The weighted average age of the fleet was less than four years and the average remaining lease term was more than five years.
The deal is expected to be completed by the end of calendar 2010.
"This transaction leverages Macquarie’s existing expertise in asset leasing, demonstrates the strength of our aircraft management capabilities and diversifies the client base of our aircraft fleet," Macquarie Group chief financial officer, Greg Ward, said in the statement.
Macquarie’s existing aircraft-leasing business includes Macquarie Asset Leasing Trust, a wholly-owned aircraft leasing vehicle established in 2005 which owns nine aircraft on lease to a major Australian airline, and MAF, a global aircraft-leasing company which in 2006 purchased GATX Air and which owns or manages 124 jet aircraft leased to 57 operators in 30 countries.
Macquarie Group shares rose 40c to $50.40 yesterday.
